Manatee schools spending probe takes shape

Published: Thursday, October 11, 2012 at 11:59 a.m.

Last Modified: Thursday, October 11, 2012 at 11:59 a.m.

MANATEE COUNTY - The investigation into how Manatee County School District overspent by about $8 million could begin as soon as next week and could include a former FBI investigator.

Attorneys from Trenam Kemker, the Tampa law firm chosen to select an auditor, said Thursday they want Tampa auditing firm Navigant to conduct the audit.

Navigant’s team would include a former FBI agent experienced in investigating government agencies. The company has conducted audits of the state Department of Management Services, Houston Community College and the Public Utility Commission of Texas.

School Board members called for an external audit after former Superintendent Tim McGonegal revealed that accounting errors led the district to use up its emergency fund during the school year and left a $3.4 million shortfall.

McGonegal said accounting errors including hiring 60 teachers without budgeting for them led to the deficit. He resigned shortly after.

School Board members could vote as soon as Monday to accept the recommendation, which was approved by the district’s Audit Committee at a meeting Thursday morning.

Charley Harris, an attorney with Trenam Kemker, said Navigant was chosen from a list of 12 firms that bid to conduct the audit. It would charge the district $250 per hour, roughly $200 less than their normal rate to private sector clients.

The final cost of the audit could be as much as $50,000, according to some estimates.

Trenam Kemker attorneys also got permission to send a letter to School Board members, school principals and district employees in finance, payroll and human resources reminding them not to destroy records that could be evidence in the audit.

That would include emails, voicemails, spreadsheets and accounting records.

Harris said he expects to get cooperation from former employees including McGonegal and Jim Drake, former district finance director.

“There are ways in which we as outside counsel can impress on all affected or involved parties the need to participate in this process,” Harris said.

<p><em>MANATEE COUNTY</em> - The investigation into how Manatee County School District overspent by about $8 million could begin as soon as next week and could include a former FBI investigator.</p><p>Attorneys from Trenam Kemker, the Tampa law firm chosen to select an auditor, said Thursday they want Tampa auditing firm Navigant to conduct the audit.</p><p>Navigant's team would include a former FBI agent experienced in investigating government agencies. The company has conducted audits of the state Department of Management Services, Houston Community College and the Public Utility Commission of Texas.</p><p>School Board members called for an external audit after former Superintendent Tim McGonegal revealed that accounting errors led the district to use up its emergency fund during the school year and left a $3.4 million shortfall.</p><p>McGonegal said accounting errors including hiring 60 teachers without budgeting for them led to the deficit. He resigned shortly after.</p><p>School Board members could vote as soon as Monday to accept the recommendation, which was approved by the district's Audit Committee at a meeting Thursday morning.</p><p>Charley Harris, an attorney with Trenam Kemker, said Navigant was chosen from a list of 12 firms that bid to conduct the audit. It would charge the district $250 per hour, roughly $200 less than their normal rate to private sector clients.</p><p>The final cost of the audit could be as much as $50,000, according to some estimates.</p><p>Trenam Kemker attorneys also got permission to send a letter to School Board members, school principals and district employees in finance, payroll and human resources reminding them not to destroy records that could be evidence in the audit.</p><p>That would include emails, voicemails, spreadsheets and accounting records.</p><p>Harris said he expects to get cooperation from former employees including McGonegal and Jim Drake, former district finance director.</p><p>“There are ways in which we as outside counsel can impress on all affected or involved parties the need to participate in this process,” Harris said.</p>